The central bank of China has recently issued a report claiming that bitcoin trading in the country has fallen from about 90 percent to ten percent worldwide at the time of writing.
China Bitcoin Trading Has Really Fallen
Automatically, we feel a huge inclination to shout, “Duh!” at the bank’s representatives. If they are reporting this in surprise, they are on the wrong track. China has worked very hard over the past year to ensure that bitcoin and crypto trading has no place within its borders, and we’re likely to see that ten percent fall even further in the coming months.
China shocked the world last summer when it announced that bitcoin and crypto mining were no longer legal activities within the nation. Regulators announced new rules from Beijing, the capital of China, that would enforce carbon neutral initiatives within the country. As a result, bitcoin mining – which was long believed to be a huge contributor to air pollution – was no longer allowed, and anybody caught engaging in the activity was likely to face huge consequences.
This was a big shocker in that China, at one point, housed roughly 65 to 75 percent of the world’s crypto mining projects. China was a big bitcoin fan at one point and was even home to both Bitmain and Canaan Creative, two of the biggest manufacturers and sellers of crypto mining machines. The collapse of the mining industry in China led many traders and analysts to wonder what was going to happen to these two big tech firms. Would they close shop and move to regions like Texas and Florida as so many other Chinese miners were doing?
In any case, observers thought that things would end there, but sadly, this was not the case. China decided to pour salt on the wounds it caused, and later announced that any sort of crypto activity – such as trading and selling digital assets – was no longer allowed. Likely fearing that such assets would present problems for the digital yuan, the country sought to get its financial systems back in flow, and regulators felt the only way to do that was to eliminate the crypto presence altogether.
Could There Be a Few People That Fix Things?
Thus, what was initially one of the biggest crypto havens has suddenly turned into a dried-up wasteland. It’s a sad and scary sight to see, but there is also some hope in the sense that ten percent of the world’s bitcoin trading still stems from China. This means there are still a few unique individuals out there that are looking to change the scope of things and defy the rules.
It would be in China’s best interest to keep its crypto industry alive and running given the size and scope of its economy. Perhaps these ten percenters can initiate some much-needed negotiations.